PreportR

4> continues from page 3april 2012 | NR 5monthly newspaperipality around 80 thousand Euros. Inthis very project, the works have notbeen accepted by more than half ofthe supervising team of works. ZAPhas classified these violations as havinga high risk.Some institutions violate the lawfor the sake of one donorEven small municipalities had violatedthe law in order to award thedonors of PDK. Regarding “Getoar”,in the tender for the construction ofthe road of Xërxë, in 2010, the municipalityof Dragash had committedseveral violations, but OSHP cancelledthe decision of this municipalityto award “Getoar”, a companyowned by Naim Besimi, which hadgiven PDK 2300 euros during thetwo election campaigns, a donationwhich was awarded by MTPT withthree tenders and by MASHT withone tender, the overall amount reachingaround 4.1 million Euros.Also, two municipalities witha small territory, Kamenica andNovobërda, and the Company forthe Management of Landfills inKosovo (KMDK) had violated thelaw in favor of the company N.T.P“Metali”, owned by Elbasan Alidemafrom Pozhora of Viti, which duringthe last two election campaignshad given PDK 2 thousand euros.ZAP had found that Kamenica hadseparated a project in some expensessmaller than 10 thousand Eurosand had entered in special contractsand payments with company “Metali”during 2008, executing thus fourspecial payments in a total of 18,286Euros, which it had not published inthe newspaper as tenders, as requiredby the Law on Public Procurement inpower back then.According to ZAP, this constituteda favoring of this company. Oneyear later, in 2009, according to ZAP,the municipality of Noboberdo hadtwice violated LPP for “Metali” in thetender for supply with heating materials:wood and coal. In 2010, KM-DK had committed continuous violationsin the tender for supply withheavy machinery, where “Metali” wasdeclared winner, but the other PDKdonor, “Getoar” from Prizren complained,.Regarding this tender, theamount of which was around 400thousand euros, there were severalsessions of OSHP which were alsoreported in the media.The company “ Shkoza FO7 “,a business owned by Fidaie Bytyçi,which in 2009 had given PDK 1 thousandeuros was awarded by MTPTwith two tenders in the amount of 800thousand euros. In 2001, in consortiumwith “Ndërtimi “, both donorsof PDK were declared winners of thetender “Renovation of the Regionalroad R105, segment: Klinë-Brojë,L=4.0km”. “Preportr”, but also othermedia had reported several times thatthis tender was accompanied withviolations, but the decision to awardthe tender to “Shkoza F07 & Ndërtimi“, was cancelled by OSHP-ja. In2011, the municipality of Vushtrri ledby Bajram Maloku of PDK took careof “Shkoza FO7”, who commissionedthis company for the maintenance ofthe roads during winter. This informationwas provided by the Centre forEmergency Readiness of Vushtrri, butthe amount of the contract betweenthe company and the municipalitywas never made public.Buja in business with the donorand the contractorThe Mayor of Lipjan, Shukri Buja,also head of PDK in Lipjan, did notsee it enough only awarding tendersto company “Stublla”, property ofAvni Stublla from Topliçan villageof this municipality, which in 2010gave 9700 euros to PDK, and in turngot from MASHT 4 million Eurosworth of tenders. Buja, apart fromhaving awarded “Stublla’ the tenderto build with concession the buildingfor the families of war heroes, warveterans, families of martyrs and orphanchildren, he had also engagedin private business with it. Accordingto the declaration of wealth of Buja,he had deposited the grain in the millof this contractor of the Governmentof the Municipality which he heads,while Hasan Preteni, Director of AAKhad said for “Zëri” that he would dealwith this case. The law on public financeswas violated also by the municipalityof Viti in relation to company“Hajrushi”, the owner of which,Hajrush Misini had given to PDK adonation of 1 thousand euros. In thetender worth 58 thousand euros publishedby the municipality of Viti forthe construction of the open duct androads in the street ‘Kongresi i Manastirit’,according to ZAP, the municipalityhad transferred in the accountof “Hajrushi” more money than allowedaccording to the installmentsdetermined in the contract.“There is a risk that the money ofthe Municipality has been misusedduring this process”, says the reportof ZAP for Viti in 2010, which classifiedthis finding as high risk.The donors of PDK managedto snatch also one-source tenders,which have been criticized by theEuropean Commission as tenderswith a high risk due to favoritism.Bejtush Zhugolli, who for the PDKbranch in Peja had given 900 Eurosin 2009, owns the company “Pejton”.The companies of his brothershave been part of public tenders duringthe last three years, 2008-2009-2010, the amount of which exceeds70 million. The Energy Corporationand the Operator of the System ofTransmission of of Electric EnergyKOSTT have declared the company“Eco Trade” as the winner, which isin the property of Mehdi Zhugolliand the company “ACDC-KOS” ofIlmi Zhugolli in around ten publictenders, which were related to replacementof installations, supplywith equipment, and tenders for repairof transporting lines. These contractsamount to around 70 millionEuros, and the largest part of thesetenders have been one-sourced.justforshowBesnik BoletiniAt least 25 high public officials, fromwhich one Deputy Prime Minister,two ministers, four deputy ministers,five municipal mayors, one permanentsecretary, four procurement directorsand eight members/directors ofboards of public companies havenot declared all the businesses oractivities in the Agency AgainstCorruption. These officials who havenot declared a part of their wealthhave not been investigated at all byAKK and they do not figure in theannual report of 2011, which wasmade public on 28 March of this year.At least 25 high publicofficials, among themministers, deputy ministers,municipal mayors,procurement directorsand directors and membersof the boards ofpublic companies havenot declared a part of their wealthat the Agency Against Corruption(AKK). Furthermore, this fact doesnot figure at all even in the AnnualReport of AKK.The finding of these undeclaredbusinesses has been made possiblethrough comparing the form onthe declaration of wealth at AKK,which high officials have filled in(received by officials at AKK) andthe database of ARBK, where thebusinesses of these high public officialshave been detected accordingto the personal identification number.The businesses found at ARBKwhere these officials figure as ownersor authorized persons do notfigure in the form for the declarationof wealth, which means thatthese businesses have not been declaredat all.Preportr has also found fromsources in the Kosovo Tax Administration(ATK) that from 25 businessesthat the high public officialsdid not declare as part of theirwealth, 5 of them have had financialturnover throughout the years,whereas 20 of them, at least officially,did not have financial turnoverreported at ATK.Nevertheless, through this act,these high public officials have violatedthe Law on the Declarationof Wealth by committing an offense.The Law on Declaration ofWealth, approved in 2010 article4 – point 3 says that: “The declarationregarding the state of wealthof high public officials and theirfamilies includes information regardingtheir wealth and their income,such as: possession of sharesin commercial enterprises”. Thisobligation is also determined evenmore clearly through the Law onDeclaration of Wealth which wasempowered in 2011. In Header IV– article 12 of this law, among others,it is said that “the public personshould declare also the functionsor other activities that the officialexercises alongside the publicfunction”. This answer was alsoprovided by the director of AKK,Hasan Preteni. When asked whetherthe high public officials shouldalso declare the businesses, regardlesswhether they have financialturnover where officials could beowners or authorized persons, hesaid that “High public officials, in

List of undeclaredbusinessesapril 2012 | NR 5monthly newspaper 5Behgjet Pacolli, Deputy Primeminister1. Tempore (BN: 70508745)Radoica Tomic, Minister for Communities and Return2. STR Fan (BN: 70081961)Agim Çeku, Minister at MKSF3. ATM Group (BN: 70656272)Nexhmedin Kastrati, Deputy Minister at MPA4. Qendra e Marketingut (BN: 70058118)Cuneyd Ustaibo, Deputy Minister at MTI5. A.G.O.-AL - Kosovo (BN: 70673991)Hajdin Abazi, Deputy Minister at MKRS6. Conn - Con (BN: 70664860)Rifat Krasniç, Deputy Minister at MAPL7. Mutlu (BN: 80485034)Ilir Tolaj, Ex Permanent Secretary at MH8. IMC (BN: 70050519)Blerim Kuçi, Governor of Suharekës9. Univerzal Group (BN: 70480619)Nenad Cvtkovic, Governor of Parteshit10. Mlp-Com (BN: 70348388), M&L-Com (BN: 70173874)Shukri Buja, Governor of Lipjanit11. Bulevardi (BN:70158321)Qemajl Mustafa, Governor of Gjilanit12. Vision Oil (BN: 70352038)Avni Kastrati13. Oil Trade (BN: 70150847), Eko-Kosova (BN: 70427328), Amar (BN: 70276279)Afrim Maxhuni, Procurment Director at MSFK14. AA-HD (BN: 70482717)Feti Ibishi, Procurment Director at MPMS15. Malsia Agricultural Cooperative (BN: 70282175)Adem Krasniqi, Procurment Director at MTI16. Rrjeta (BN: 70028120)Arben Loshi, Procurment Director at MPJ17. Beni Keramikë (BN: 80427875)Gani Sylaj, Board member of the PTK18. Dreni (BN: 70424955)Nuhi Ahmeti, Board member of the PTK19. Natyra (BN: 80076436)Fadil Ismaili, Director in KOSST20. Arting (BN: 70600560)Flamur Keqa, Board member of the KEK21. IBF consulting training (BN: 70494558)Asllan Vitaku, Chairman of the Board in KMDK22. Asllan & Sons (BN: 80306989)Hanefi Muharremi, Board Member of ANP23. “Eksperti Muharremi” Services (BN: 70509717)Aleksander Janicevic, Former member of the Board in RTK24. Inter Comerce (NB: 70204548)Rrahman Paçarizi, Former Chairman of the Board in RTK25. Institute for Quality ARAC (BN: 70448807)compliance with article 12 of theLaw No. 04/L-050 are obliged todeclare in the form for the declarationof wealth all the functionsor other activities that the officialsexercise alongside the high publicfunction.This legal obligation applies forall public officials until the pointwhen they unregister the businessesor terminate their functionin the respective businesses, andthis should be done in the Agencyfor the Registration of Businesses(ARBK). The representatives ofARBK say that a business shouldbe terminated when on such is deletedfrom the Regiter of Businessesand when it fulfills the tax obligations.financial turnoverof 6 businessesout of 28Behgjet Pacollideputy primeminister, “Tempore”Asllan Vitakuchairman of the board in KDMK, “Asllan & Sons”1,757.00200516,610.002010Rifat Krasniçdeputy minister in MAPL, “Mutlu”1,273.00200020,828.002007Avni KastratiMayor of Mitrovica, “Oil Trade”33,372.0020009,290.0020024,142.0020063,455.0020114,000.00200118,666.00200810,612.0020035,393.0020074,150.00200333,982.02009Nenad CvtkovicT.P M&L-Com, G.T.P Mlp-Com321,360.0016,365.0020085,233.00200426,920.0020101,261,300.00 321,360.003,125.00 3,125.002007 2007T.P M&L-Com20042001 2002G.T.P Mlp-Com13,650.0200912,484.00200615,541.002011One for me, one for you...The Agency Against Corruptionhas a much deeper conflict with itsown role. It should control the officialsfrom which its own directorcontinuously requires a raise ofsalaries. It seems that this is thechief reason why AKK does notsanction the violators of the law,but protects them. Somehow thisappears like one hand scratchingthe other, or the axiom one for me,one for you.The businesses found at ARBK,where these officials are owners orauthorized persons do not figurein the form for the declaration ofwealth, which means that thesebusinesses have not been declaredat all. The AKK director, HasanPreteni, during the presentation ofthe annual Report for 2011 did notmention at all the above-mentionedofficials, and has furthermore statedthat “there are no high governmentofficials for which investigationprocedures have been initiateddue to non-declaration of wealth”.When businesses which hadnot been declared within the legaldeadline were found in the past,AKK did not send them to the MinorOffense Court, but it contactedthe officials who did not declaretheir businesses, and enabled themto declare them, through filling inthese businesses or functions inthe register for the declaration ofwealth even beyond the determinedlegal deadline.Officials of AKK, unofficiallyhave stated that if the declarationof wealth is not done in full, therecan be no sanctions, since accordingto them, “The Law on the Declarationof Wealth does not determinesuch s thing, and that the lawin question creates space in thisaspect and does not sanction partialdeclaration”. This fact is confirmedeven in the AKK work reportfor 2011, since 10 Deputiesof the Kosovo Assembly who havenot declared their businesses, andafter Çohu and Preportr sent thoseto AKK, the latter only added thosebusinesses which had not been declaredin the declaration form. So,they were obliged to declare them,but had hidden them, and AKK,considering this as declaration asper request, did not proceed themto the Minor Offense Court, excludingone case which did not respondto the letter of AKK for providingadditional information. Thismeans that one high public officialcan hide his/her businesses and canmake such declarations only if his/her businesses are discovered, andfor such non-declaration, accordingto AKK, ni sanctions can be undertakenagainst him/her.I knew, I knew not...Preportr has contacted withall above-mentioned officials (exceptfor Ilir Tolaj who is currentlyin detention), and asked themregarding the non-declarationof their respective companies. Alarge part of them say that thesebusinesses are not active and theythough that they should not declarethem, since they claim thatthey do not have any financialturnover. But the Law on Declarationof Wealth obliges these officialsto declare every business activity,regardless of the fact whetherthese businesses are profitableor not, or whether their turnoverbalance is zero, or even negative.This obligation is practicallylinked with the fact that evenif the businesses of these officialspresently do not have financialturnover, tomorrow they couldcommence with activities sincethey are registered in ARBK, inother words, they are active.The Deputy Prime Minister ofKosovo, Behgjet Pacolli, did notdeclare the company called “Tempore”,in which he is the owner,while Rrustem Pacolli is the authorizedperson. Pacolli said thathe did not declare this companyin 2011 since, according to him,it does not have any business activity.“The company ‘Tempore’ ispassive, it is undergoing the proceduresof termination and is underthe management of RrustemPacolli. AKK is informed abouteverything”, Pacolli has said. Butthe data of the Kosovo Tax Administrationshow that Pacolli’sCompany has had turnover andits value is not zero. “Tempore”Company, in which Pacolli is theowner, in 2002 had 9 thousandand 290 euros of financial turnover,in 2003 had 10 thousand and612 euros turnover, and in 2004had 133 thousand and 450 eurosof turnover.The Minister for Communitiesand Return, Radoica Tomiç did notdeclare his company “STR Fan”at all in the Agency Against Corruption(AKK). Minister Tomiçthrough the information office hassaid that this company for morethan 8 years is passive, while hehas declared that he will terminatethis business in ARBK. “...there isno income in the account of thiscompany, which can also be verified.This company is registeredunder the name of minister Tomiç,while it is managed by his sister. Inthe coming days, procedures willbe initiated for obtaining the necessarydocuments from the Ministryof Trade and Industry for thenon-functioning of the company inquestion”, says the answer that theminister has provided through theinformation office.> vazhdon në faqe 6

6april 2012 | NR 5monthly newspaper> vazhdon nga faqja 5The Minister of the SecurityForce, Agim Çeku did not declarein AKK the company “ATMGroup” Sh.p.k., in which he isco-owner with Tomislav Kaçiç –Alesiç and Mark Shalaj. MinisterÇeku says that he did not declarethis company, since accordingto him, this company neverfunctioned and never had financialturnover. He says that, takingthis in view, he thought thatthe company had itself been terminatedand is not registered inARBK. “It was simply and attemptand an idea by a Croatian friendof mine back when I was not employed.After you have contactedme, and I thank you for remindingme, I have immediately takenmeasures to get out of there”,said Çeku.The Deputy Minister in theMinistry of the Public Administration,Nexhmedin Kastrati, didnot declare his company “Qendrae Marketingut”. Cyneyd Usaibo,deputy minister in the Ministry ofTrade and Industry did not declarein AKK the company “A.G.O.-AL.” – Branch in Kosovo, wherehe is the authorized person. HajdinAbazi, deputy minister in theMinistry of Culture, Youth andSports did not declare the company“Conn - Con”, where heis co-owner with Ismet Bajrami.All three of these deputy ministersattempt to give the same justifications,saying that their businessesdo not conduct any businessactivity. They say that theythought they should not declarethem since they do not have anyfinancial turnover.Whereas, Rifat Krasniç, deputyminister in the Ministry of Administrationand Local Governmentdid not declare the company“Mutlu”. Krasniç has been finedon 31.12.2011 by the municipalcourt for minor offense in Prishtinabecause he had not declaredhis wealth at all in AKK. He declaredhis wealth on 01.11.2011,but he did not declare “Mutlu” atall. He says that he had forgottento declare this business. “I havethis company functional for 20years. I have received the officialduty on 27 March of 2011 and Icould not declare the wealth andthe court has fined me with 200euros. Whereas after I have declaredmy wealth, I had forgottento declare it”, says Krasniç.Krasniç in this company has hadturnover for many years and stillcontinued to have. His companyin 2000 had 1 thousand 273euros turnover, in 2001 it had 4thousand euros, in 2006 it had 12thousand and 484 euros, in 2007it had 20 thousand 828 euros, in2008 it had 18 thousand and 666euros, in 2009 it had 33 thousandand 982 euros, in 2010 it had 26thousand and 920 euros and in2011 it had 15 thousand and 541euros of financial turnover.Ilir Tola, ex-permanent secretaryin the Ministry of Healthdid not declare his company “IM C”, where he is co-owner withGazmend Pruthi. He currently isarrested under the suspicion forinvolvement in corruption.Also some municipal mayorsdid not declare their businessesin AKK. The mayor of Suhareka,Blerim Kuçi did not declarehis company “Universal Group”,which he co-owns with BlerimGrainca. The mayor of ParteshNenad Svetkoviç did not declarehis companies “Mlp - Com” and“M & L – Com”. (Svetkovic in2007 in the first company had afinancial turnover of 3 thousandand 125 euros).The mayor of Lipjan, ShukriBuja did not declare his businessD.p.h “Bulevardi”. Also the mayorof Gjilan, Qemajl Mustafa didnot declare his company “VisionOil “ Sh.p.k. where he is co-ownerwith Selatin Mehmeti, BegatorHila and Alban Shehri. The mayorof Mitrovica, Avni Kastrati didnot declare his three companies inAKK: “Oil Trade”, “Eko-Kosva”, which he owns and the company“Amar”, which is in the propertyof his son, while he is the authorizedperson. (Kastrati in the company“Oli Trade” has had financialturnover for many years. In 2000it had 33 thousand and 371 eurosof turnover, in 2001 it had 1 million261 thousand and 300 euros,in 2002 it had 321 thousand and360 euros of financial turnover).The reasons for not declaringthese companies by the mayorsdo not stand. They say that theyare not operating with these businesses,they say they do not havefinancial turnover and they didnot know that they are still registeredin ARBK, since they thoughtthat if the businesses do not havefinancial turnover they terminatethemselves!Also some procurement directorsdid not declare their businessesin AKK, which are in their nameregistered in ARBK, as are all thebusinesses of these 25 officials.Afrim Maxhuni, director ofprocurement in the Ministry ofthe Security Force did not declarehis company “AA - HD”, which ishis property. Feti Ibishi, directorof procurement in the Ministry ofLabor and Social Welfare did notdeclare his agricultural business“Malësia” where he is co-owner.Also Adem Krasniqi, director ofprocurement in the Ministry ofTrade and Industry did not declarehis trade company “Rrjeta”.While Arben Loshi, directorof procurement in the Ministryof Foreign Affairs did not declarehis company “Beni - Keramikë”,which is his property. Also theseofficials attempt to give the samejustifications, saying that they didnot have business activities duringthe last years and that theythought they should not declarethese businesses in AKK.Also some directors and membersof boards of public companiesdid not declare their businessesin AKK. Gani Syla, directorof the board in the Post andTelecom of Kosovo did not declarehis company “Dreni”, where heis co-owner. Also Nuhi Ahmeti,director of the board in the Postand Telecom of Kosovo did notdeclare his company “Natyra”.While, Fadil Ismajli, director inKOSST did not declare his company“Arting”, where he is coownerwith Mehmet Ahmetaj andMisin Voci. Flamur Keqa, memberof the Board in KEK did notdeclare his company “IBF consultingtraining”. These officialssay that their businesses are passiveand did not know that theyshould be declared, although theLaw on the Declaration of Wealthobliges them that, regardless of thebusiness activity, the businessesthat are registered in their namesshould be declared.Asllan Vitaku, head of theboard in the Company for theManagement of Landfills in Kosovodid not declare his company“Asllan & Sons”, where he is owner.He says that he did not declarethis company, with the reason thathe did not know it should be declared.“In this company, my son ismanager and I don’t know whyit was not declared. This does nothave much business, we do littlebusiness...”, said Vitaku. Throughthis company, he has had financialturnover throughout the years andit still continues to. Vitaku’s company“Asllan & Sons”, in 2005 had 1thousand and 757 euros turnover,in 2006 it had 4 thousand and 142euros, in 2007 it had 5 thousandand 393 euros turnover, in 2008 ithad 16 thousand and 365, in 2009it had 13 thousand and 650 euros,in 2010 it had 16 thousand and 610euros and in 2011 it had 3 thousandand 455 euros financial turnover.Also Hanefi Muharremi, memberof the board in ANP did notdeclare his business “Zyra e ShërbimeveEksperti Muharremi”. Hedoes not give any specific reasonwhy he did not declare this business.“I have this business since2007 and I don’t know what is thematter. It should be active, somecases we do in the courts. But Iwill check what is the matter”,said Muharremi.Remark on theviolators of the law:Politicians and high officials whoare obliged to declare their wealth at theAgency Against corruption (AKK) canfreely and without any concern hide theirbusinesses or functions they might havein certain businesses, and they will notbe penalized. This is because AKK considersthat non-declaration of a part ofwealth or function in businesses by thehigh public officials does not constitutea violation of the Law on Declaration ofWealth.During a research published onNovember 2011, Organization ÇOHU! andQKGH-ja had found that 7 Deputies didnot declare their wealth or functionsthey have in certain businesses andhad denounced these findings at ALL.But, the Agency had decided that theseDeputies did not violate the law, and as aconsequence, AKK did not consider thatthe high officials, who are obliged by thelaw to make public all possessions theyhave under their name, as well as functionsthey might have in businesses, maynot have to declare them, and they cansleep peacefully because AKK will notinitiate penal procedures against them.Furthermore, the Agency has allowedall high officials to declare their businessesand functions they might have inbusinesses at AKK even after the legaldeadline (31 of March of each calendaryear). According to this interpretationthat AKK did, one high official can hidea business, where potentially he mighthave financial turnover/profit and canwin public tenders and cause conflictof interest, and if it is found that he/shedid not declare the business or function,no sanctioning measure is undertakenagainst him/her, but simply the new datais added to the register for the declarationof wealth, and the official is ok withthe law!...The director of AKK himself, HasanPreteni, during the presentation ofthe report of the Agency for 2011 haddeclared that there is no high officialagainst whom procedures have been initiatedas regards the full non-declarationof wealth.Aleksandër Janjiçeviç, memberof the board in RTK did notdeclare in AKK his company P.P.“Inter - Comerce”, which heowns. Also Rrahman Paçarizi,ex-head of the board of RTK didnot declare his business Institutefor Quality “ARAC “. These officialssay that these companiesare non-profitable and they didnot know they should be declaredeven if they are non-profitable.Active or passive?The businesses registered inARBK are active and have thisstatus until the owners undertakethe proper procedures forterminating the businesses. Thisis confirmed also by the chief executiveof ARBK, Gazmend Mejzini.“A business is consideredactive as long as it figures as registeredin the database of ARBK.If the business decides to be terminatedthen the procedures fortermination should be respected,depending on the type of the business.In the website of ARBK youcan find the procedures and documentsnecessary for the terminationof businesses”, says Mejzini.Practically every business registeredin ARBK can start to havefinancial turnover at any momentor even compete in different tendersto win projects. Furthermore,these companies, even ifthey are fictional, they can bid indifferent tenders in order to influence“the game” with bids. This isone of the reasons why the Lawon Declaration of Wealth obligesthe high officials to declare theirbusinesses or their functions theyhave in the businesses in orderto prevent possible conflicts ofinterest.The documents which are necessaryfor terminating an individualbusiness or general partnershipare: Completion of theform, copy of owner’s ID (owners),original business certificate,certificate by the Kosovo Tax Administrationfor terminating thebusiness. Whereas, the documentsnecessary to terminate corporationsare: Completion of the specificform, publication of liquidationin a daily newspaper in treeLanguages ½ of the page, certificateby the Kosovo Tax Administrationfor the termination of thebusiness, copies of ID of owner orcopies of passports, if the owneris a foreigner, the decision onLiquidation of the Corporation,the decision for the naming of theLiquidator, report on the assetsof the capital.So, only through followingthese procedures can businessesbe terminated, and until a businessis terminated in ARBK, itshould be declared, regardlesswhether it is profitable or not.

april 2012 | NR 5monthly newspaper 7The political subjects have received donationsfor the campaign exceeding what is allowed bylaw. CEC, as an overseeing body of the parties,has not sanctioned them for the violations theyhave committed, but has only obliged themto return the prohibited contributions to thecontributors. During the last research carriedout by “Preportr”, it was found that 43 differentsubjects, mainly construction companies,which as legal and physical persons financedthe Democratic Party of Kosovo (PDK), duringthe last two election campaigns have benefitedmore than 100 million euro from public tenders.PDK with numerous violations of the lawThis research has mainly focused on the amount receivedby political parties in the form of cash, but this isnot the only form the parties receive support from theprivate sector. Not rarely do companies offer support inthe form of services, especially marketing, which it canbe said go almost un-monitored. “Magjistralja” fromGjilan has given PDK 16 thousand euro, which is in violationof the Law on Financing of Political Parties, andarticle 1 and 1.2 says “Political Subjects are allowed toreceive contributions from: legal persons in the amountof – not more than ten thousand (10.000) for one (1)calendar year”. Also “Euro Trans” company, also fromGjilan, has given more money than allowed by the law.This company has given PDK 10,500 euro.Apart from companies, also individual person, mainlybusinessmen related with the public sector, have exceededthe limits determined by the law in financing ofpolitical parties. Even as physical persons who have financedthe parties by exceeding the legal limits, NijaziIdrizi within one day has given 7000 euro. Accordingto CEC audit report for 2010, also Florim Zuka, ownerof “Tali” company has donated 3000 euro to PDK electioncampaign as a physical person. Amounts exceedingwhat is allowed have also been given by: Gëzim Duraj5000, Naser Kurti 5000, Shefki Xhakli 4500, BejtushMustafa 3500, Rexhep Ferizi 2.500, Musli Ramadani6,497, Flurim Zeqiri 5.000, etc. These donations exceedthe legal limit for donations by individuals, respectivelyphysical persons, which according to the law thelimit determines amounts not more than two thousand(2,000) Euro for one (1) calendar year – article 1 and 1.1of the Law on Financing of Political Parties. RegardingPDK, the auditor has found other violations as well. Insome cases when amounts exceeding 1,000 donated byphysical persons, the personal data of the donors andthe date of the donation have not been filled in. The externalaudit report observes that the data on the registrationand operation of political parties according toRegulation 01/2008 have not been completed. The auditorhas found that this political subject (PDK) has notmaintained a proper accounting, according to applicablestandards in Kosovo, and therefore, the data presentedin the form do not reflect reliability, since according tothe auditor, the verification was impossible due to thelack of supporting evidence. Ironically, the violation ofthe law by non-complying with the required accountingstandards, respectively the lack of financial documentshave been turned around to serve as defense by the violatingparties, since according to the audit report, it isimpossible to establish whether there is material misuseor not. “...due to lack of supporting documents,we were not able to...verify whether the financial statementsdeclared by the political subject are free of mate-Giveand-take BesaPolitical parties comingto power in Kosovo areclosely linked to their donors.During elections,they receive amounts ofmoney from physicaland legal subjects in violationof the Law on Financingof Political Parties. Duringthe elections of 2010, the parties inpower, PDK and AKR have receivedthe most of donations from physicaland legal persons, in comparisonwith other competing parties inthe elections. The audit report commissionedby the Central ElectionCommission (CEC) on the financialstatements of the political parties for2010, published during June of thisyear, observed that the biggest violatorsof this law are the two politicalparties – the Democratic Party ofKosovo and New Kosovo Alliance.These two subjects have the largestnumber of donors, and as a consequencethe largest number of violations.Disregarding the law, thedonors, be it physical or legal persons,have given larger amounts ofmoney than allowed by the law.Previous research carried by “Preportr”shows that the donors of politicalparties in power are mainlycompanies which win public tendersas a compensation for theirsupport to the parties during electioncampaigns, which representsa serious violation of competitionin public procurement. During thelast research, “Preportr” has foundKalajathat 43 different subjects, mainlyconstruction companies, whichas businesses and physical personsfinanced the Democratic Partyof Kosovo (PDK), during the lasttwo elections campaigns have benefitedin the amount of more than100 million euro through publictenders. The Democratic Party ofKosovo (PDK), led by Prime MinisterHashim Thaçi, is the party whichhas received the most donationsboth from physical but also fromlegal persons. The audit report hasfound this political subject to havecommitted the most violations, aswell as other irregularities in thefinancial statements it has submittedto CEC.> continues on page 8

8april 2012 | NR 5monthly newspaper> continued from page 7rial misuse, and whether they are inharmony with regulation 01/2008for the Registration and Operationof Political Parties and with the Lawon general elections 03-L/073”, theaudit report says.Donations from overseasAfter PDK, the party which hasreceived the most donations is NewKosovo Alliance (AKR) of BehgjetPacolli. According to the audit report,this party has received moremoney from a single person withinone day. Furthermore, this partyhas received a lot of donations fromSwitzerland. The clan support givento AKR is what makes this partydifferent from the others. Thus, individualswith the last name of thehead of the party prevail in the list ofdonors, but taking in view that thehead of the party, Behgjet Pacolli isa multimillionaire, it is possible thatthese names have simply been usedto create the impression that the financingof this political party is notone-source.Habibe Bunjaku, Tahije Pacolli,have donated 15, 000 euro each,Enver Pacolli 14, 992 euro, ErikaCampello 13, 475 euro, Flamur Sefaj20.000, Adnan Pacolli 19, 965euro, the amount of 19 thousandand 963 euro given by Armend Salihuand Luciana Gaitto, and DautPacolli 15, 200 euro. The auditor hasnot found violations of such naturein the other two big political parties,LDK and AAK, which during thisperiod of time have been outside ofgoverning power. This in a mannerconfirms the suspicions that donationsare closely related to the powerof the parties, which based on numerousresearches, return the favorto the donors by using their powerover the public procurement. Anotherscandal is the practice of interferenceof foreign capital in financing ofpolitical parties, which is prohibitedin democratic countries since it canaccount for a serious infringement ofdemocracy. Smaller parties, mainlycoming from the communities, havereceived funds from overseas, whichis in violation of the Law on Financingof Political Parties, Article 11, act1.1, which specifies that “Foreignfinancial support and materials isprohibited from: 1.1 government ornon-government foreign institutions,as well as foreign physical and legalpersons” The political party CrnogorskaLiberalna Stranka has receiveddonations in the amount of 3000 eurofrom Montenegro. Money fromoverseas has also received the politicalparty “Levizja per Bashkim”,which has received from Albania anamount of 9,963 euro.No sanctions for violators of the lawThe violations we observe in thisreporting are not a new phenomenonin the functioning of political parties.They have been present even in previousmandates, when other partieswere in power. These violations aresanctioned very poorly, or not at all,and this is repeated year after year.The Central Election Commissionup till now has not issued any finesto political subjects, which accordingto the audit Report have violatedthe law. The only measure undertakenby CEC is the request madeto political parties that they returnthese illegal donations back to thedonors, thus without being sanctionedfor violating the law. FehmiPireva, high legal officer in CEC hassaid that after the publication of theaudit report, they requested from politicalparties to return these donations,when there were cases of exceedingthe amounts, and this withina 14-day deadline, which accordingto him, the parties accomplishedto do. “We have done this based onRegulation No.01/2008 for registrationand operation of politicalparties, where article 17.7 says that“If the registered political party acceptsthe contribution which is notallowed according to this Regulation,the head of the party returns thecontribution to the contributor withinfourteen days (14) from the timeof receiving the information for theprohibited contribution”, he says.In cases when the political subjecthas not been able to return thefunds to the donor, this Regulationdetermines that the money should beallocated to the Budget of Kosovo.The Democratic Party of Kosovohas so far carried out this obligationtowards CEC, and regardingfour cases when the donors couldnot be identified, the money allocatedto this party by the NationalAssembly has been allocated to theBudget of Kosovo.Although the administrator ofthis political subject, Halil Selimisays that the part of raising donationsfor the campaign is not theirresponsibility, since during electioncampaign it is the Leadership of theParty which announces people responsiblefor raising money, theyhave cooperated with CEC in returningthose funds. “I cannot say thatthese cases represent violations ofthe law, but I can say that that moneyhas been received in an irregularmanner. Now all this has been settledin cooperation with CEC”, Selimihas said.He has said that the party didnot identify 4 donors and the moneythat should have been returned“The only way to deal with this isnot through persecuting individuals,because those cases will continue tohappen, but it is through changing theeconomy. “Ambassador Christopher Dell,May 2010“Kosovar officials and political partiesare so much involved in this phenomenonthat it is impossible to changeanything without their good will...whatis worse is that there are cases whenjournalists are paid to write articles.... ”Ambassador Christopher Dell,March 2012The American Ambassador ChristopherDell at the end of his mandatehas launched a general attack againstdifferent social actors in Kosovo,through generalizing them as corruptand manipulated. Be as it may, whencommenting on questions addressed byOrganization ÇOHU! regarding the mannerof signing the contract for buildingthe Highway and for the giving withconcession the Airport of Prishtina, andthe fact that the bids were not openedpublicly, Ambassador Dell had defendedthe signing of these contracts, consideringthat those who had raised questionsabout these issues are “nostalgicsof the cold war”.to them in the amount of 2,500 euro has beenallocated to the budget of Kosovo. Officialsin PDK have not consented to show whichthe amount was due to be returned to the donors.Unofficially, it has been pointed out thatthis amount is a little over 50 thousand. Thismoney has been returned from the Fund fordevelopment and democracy, which the Assemblyhas allocated to this party.The other party, which according to the auditreport has violated the law by receiving moredonations than is allowed from the same donorwithin one day, has not received any requestby CEC to return the money. HafizePacolli, responsible for finances in AKR, hassaid that since she did not receive a request, itimplied that this political subject did not violatethe law. “This can be due to the fact thatall sources of money are known to the party.All the donations to the party are carriedthrough bank transactions and we have submittedall bank invoices to CEC and the auditor”,she has said, but without being able toexplain the fact how it did come that the auditorhas evidenced the donations received inthe amounts exceeding 1,000 euro from thesame person within one day as violations bythis political subject.The lack of certified financial officersThe violations of the law, which politicalsubjects prefer to call irregularities, occur moredue to lack of experience and knowledge of thelaw of those receiving the donations.The auditor has observed that the politicalsubjects do not have certified financial officers,whereas one such officer is lacking evenin CEC. The lacking of a financial officer is alsomentioned by the Director for the registrationof political parties, Miradije Mavriqi. Shehas implied that a lot of things go wrong becausethe Office has a very small number ofemployees. Even the political subjects havementioned the fact that people in the field arenot properly prepared. During a roundtablerecently organized by the Kosovo DemocraticInstitute (KDI), focusing on the financing ofpolitical parties, the majority of participantshave emphasized the lack of specialized staffin CEC, but also in political parties.open society instituteFondacioni i Kosovës për Shoqëri të HapurKosovo Foundation for Open Society